Summary of Main Supplementary Explanations Questions and Answers at the FY2020 Second Quarter GREE Results Briefing Held on February 3, 2020

GREE’s financial performance for the second quarter of fiscal year 2020 reflects a strategic diversification beyond core mobile gaming into investment, advertising, and live entertainment sectors. Operating income for the upcoming third quarter is projected to remain stable between 0.5 billion and 1.0 billion yen. A significant portion of the recent growth in ordinary and net income is attributed to the successful listing of companies within the corporate venture capital portfolio, suggesting that the investment business serves as a primary driver for financial upside alongside traditional operations.

The gaming segment demonstrates successful international expansion, particularly through the global marketing of Another Eden. By leveraging intellectual property collaborations with Persona 5 and optimizing digital advertising, the company doubled its overseas user base during the period. Meanwhile, the Advertising and Media business is trending toward profitability, with the goal of reaching that milestone before the end of the fiscal year. These developments indicate a shift toward more efficient user acquisition and monetization strategies across the company's digital ecosystem.

Future growth initiatives are heavily centered on the Live Entertainment business and the REALITY virtual live distribution platform. While large-scale promotional schedules remain undecided, monthly investments continue to focus on platform functionality and development. Management views the VTuber market as a high-growth area, encompassing both talent management and broader live streaming services. The anticipated rollout of 5G technology is expected to serve as a critical catalyst for this segment, providing the necessary infrastructure to support expanded virtual reality and live distribution capabilities.